What the new presidency means for HR: Part 2

Last week, we examined how the future Trump administration in the White House – as well as a Republican-led Senate and House of Representatives – may affect the proposed overtime rule and the Affordable Care Act. As promised, Triton Benefits and HR Solutions is continuing its coverage on these big-ticket HR issues. In part 2 of this discussion, we look at minimum wage and FMLA and family leave under the Trump presidency:

"The Fight for $15 has been successful in some respects."

The Fight for $15
Workers from across the country have been calling for a minimum-wage increase for many years. In 2008, the movement gained a name – The Fight for $15 – as fast-food and retail employees, childcare teachers, adjunct professors and more banded together to strike for higher pay. The initiative has been successful in states, including New York and California and in cities such as Seattle, Portland and Chicago. While the raises are incremental – meaning they will increase over a period of a few years to a higher wage – the Fight for $15 has had an impact in the discussion of what defines a living wage.

The current federal minimum wage is $7.25. Yet, states have the jurisdiction to set their own amount, which is oftentimes higher than the federal standard, and employers must adhere to the larger amount. Large cities, such as Chicago, Los Angeles and New York City, have recently created their own minimum wage as the cost of living in these areas is often higher than the statewide average.

Changing the federal minimum wage was a large topic of discussion during the 2016 presidential campaign. With businessman Donald Trump entering the White House on Jan. 20, 2017, it's important for HR professionals to know where his administration stands.

The minimum wage
As it stands, President-elect Trump's outlook on altering the federal minimum wage is still unknown. Over the course of his campaign, he gave differing opinions on the topic.

While Trump and Pence's campaign outlooks on this issue are important to keep in mind, HR leaders should also pay attention to the views of the Republicans leading Congress. In the past, the party has suggested increasing the federal minimum wage would hurt small businesses and slow hiring, according to U.S. News and World Report.

Yet, a recent study from the Associated Press found that more Republicans have begun backing a pay hike. The report showed 40 percent of conservative respondents favor a wage increase, while 31 opposed the action and 27 percent didn't lean one way or another. 

Trump's plan for parental leave wouldn't extend to new fathers.Trump's plan for parental leave wouldn't extend to new fathers.

FMLA and family leave
Currently, the U.S. is the only nation without some form of national paid parental leave for employees with newborns out of 41 developed countries, according to the Organization for Economic Cooperation and Development. Instead, the Family and Medical Leave Act requires employers to provide 12 weeks of unpaid leave to employees for the birth or care of an child or placement of a child for adoption or foster care with a worker.

Creating a paid parental leave regulation was an important talking point during the presidential election. In September 2016, President-elect Trump revealed his plan, which called for six weeks of compensated maternity leave. The policy does not extend to new fathers or parents who adopt or use surrogacy. On the other hand, same-sex couples whose marriage was recognized under state law and single mothers would be eligible for the same leave, The Washington Post reported.

The President-elect is also calling for the ability for parents to deduct childcare expenses for up to four children and elderly dependents from their income tax, and enroll in tax-free dependent care savings accounts. Furthermore, Trump wants to provide low-income families with an expanded earned income tax credit – essentially a childcare rebate – and a matching $500 contribution to savings accounts for these expenses.

The Secretary of Labor choice
As reported in Part 1 of this article, President-elect Trump has nominated Andrew Puzder for the secretary of labor position. The chief executive of CKE Restaurants, which owns Hardee's and Carl's Jr., has already voiced his opposition to a minimum wage increase, according to The New York Times. When it comes to leave, the nominee's positions are less well-known.

Puzder has criticized paid sick leave policies in the past – especially concerning those for federal contractors – and it is expected that he will be more business-minded about FMLA regulations, according to Jackson Lewis P.C., a law firm providing workplace law representation. 

Until Inauguration Day and the months that follow, it is difficult to predict the future of things such as the minimum wage and FMLA and family leave. It is crucial for HR professionals to stay on top of any information related to these policies and more so as to educate their workforce appropriately.

Triton Benefits and HR Solutions can assist employers and their HR leaders with local, state and federal compliance, especially when a new administration enters the White House in 2017.